T&T could earn as much as $10 billion over the next nine years following the signing of a deal between Government and Royal Dutch Shell.
The announcement was made by Energy Minister Franklin Khan who gave details to the Parliament on Monday following more a year of negotiations. He revealed that Shell agreed to pay government $2.5 billion by the end of 2019, the money to be paid in US to the sum of US $397 million.
The government has signed a new energy agreement between with Shell at the energy company’s headquarters in The Hague, Netherlands.
The new agreement is being labeled "a significant milestone for the people of Trinidad and Tobago" as it features an enhanced revenue package for the sale of LNG.
"The energy deal is the result of months of positive and relationship-building discussions between Shell and the Government," a statement by the Office of the Prime Minister said.
Shell Trinidad and Tobago has announced it has achieved first gas from one of its developments in the East Coast Marine Area (ECMA).
Shell said in a statement issued Monday, that it delivered first gas from its first well in its Dolphin Extension Campaign ahead of schedule.
The Dolphin development will consist of three production wells when completed.
Prime Minister Dr Keith Rowley led a delegation of energy experts to meet with Shell executives in London today, a statement by the Office of the Prime Minister said.
The Government’s delegation included: Minister of Energy and Energy Industries, Franklin Khan, Minister in the Office of the Prime Minister and the Ministry of the Attorney General and Legal Affairs, Stuart Young, Mark Loquan, President of National Gas Company, Leroy Mayers, Heidi Wong and Richard Jeremie, advisors in the Ministry of Energy and Energy Industries.
Just months after Centrica sold off its interests in Trinidad and Tobago, another gas company has announced its departure.
Chevron has struck a US$250 million deal to sell off its Trinidad & Tobago assets to fellow supermajor Shell.
The US player said on Monday it entered an agreement to sell all shares in Chevron Trinidad & Tobago Resources to the Anglo-Dutch giant, in addition to all interest in its liquefied natural gas marketing and transportation company, Trinling Limited.
"Chevron confirms it will be exiting Trinidad & Tobago," a spokeswoman said.
The Government says it has given Shell's executives "favourable updates" on requests made by the company at a meeting Wednesday.
Among the things including Shell had asked for was accelerated approvals for the company's work programmes.
The following is a statement by the Office of the Prime Minister.
"Prime Minister, Dr. the Honourable Keith Rowley met today (May 10, 2017) with senior executives from Shell, who provided him with a progress report on a number of matters that were discussed on his trip to Houston last March.
Royal Dutch Shell Plc, which recently bought over the assets of the BG Group of which BGTT was a part, is preparing to divest US$30 billion in assets, including those it owns in this country.
The Energy Voice is reporting that assets linked to Shell’s interests in Trinidad & Tobago and stakes in oil and gas fields in India may be on the block. Pipelines in the U.S. are also high on the list.
The report says disposal plans aren’t final and will depend on demand.